Senators Defend Actions 4 Of `Keating Five` Testify Before Panel

November 17, 1990|The Washington Post

WASHINGTON -- Four of the five senators under investigation for ties to savings and loan executive Charles H. Keating Jr. made impassioned and sometimes combative defenses of their actions on Friday, arguing that they did nothing more than other members of the Senate in helping constituents and political contributors.

Sens. Alan Cranston, D-Calif., John Glenn, D-Ohio, John McCain, R-Ariz., and Donald W. Riegle, D-Mich., told the Select Committee on Ethics that they had done nothing wrong and had complied with existing Senate rules in their dealings with Keating. Sen. Dennis DeConcini, D-Ariz., who has repeatedly denied any improprieties, is expected to repeat those denials when the hearings continue on Monday.

To illustrate his contention that fund-raising is closely tied to official Senate business, Cranston brought in five huge charts -- readable to the television audience -- listing the staff members every senator has designated to raise campaign funds.

``Let me ask you this, members of the committee,`` Cranston said. ``How many of these Senate staffers who are legally empowered to raise money do you think have sat in meetings with their senator and contributors, potential or proven, when substantive issues were discussed, like problems with bureaucrats and legislation? How many of you ... could testify that some member of your Senate staff who you have authorized to raise money has never ever said to you something like, `John Doe is coming in and about to meet with you, and I`ll sit in; here`s what I think you ought to do -- and, remember, he`s been a big help to you`?

``I say that it`s absurd to suggest that fund-raising and substantive issues are separated in Senate offices by some kind of wall.``

Known as the ``Keating Five,`` the five senators are being investigated for their intervention with federal regulators on behalf of Keating and his failing Lincoln Savings and Loan of Irvine, Calif., during a period in which Keating raised more than $1.3 million for their campaigns and causes. The collapse of Lincoln is expected to cost taxpayers at least $2 billion.

The senators opened their defense after special committee counsel Robert S. Bennett, winding up his presentation of findings from a yearlong investigation, charged that Cranston actively solicited money from Keating while Keating was seeking his help in dealings with federal thrift regulators.

Cranston`s official intervention on Keating`s behalf was ``closely connected`` with the money Keating raised for him, including $49,000 in campaign contributions, $850,000 for three voter-registration groups controlled by Cranston and a $300,000 line of credit for campaign use that was never used, Bennett contended.

Bennett, who outlined his case against the other four senators on the first day of hearings on Thursday, said Cranston was the only one of the five who personally solicited Keating for contributions by the thrift entrepreneur, now facing trial in California on junk-bond fraud charges.

Glenn and McCain, who were largely absolved by Bennett of unethical conduct, told the committee they did nothing improper or illegal.